Transrail Lighting IPO: Book Building Issue of Rs 838.91 Cr To Open On December 19; GMP Jumps 27%

The bid/offer period for Transrail Lighting Limited's (TLL) initial public offering (IPO) of equity shares will begin on Thursday, December 19, 2024, and end on Monday, December 23, 2024.

One of the company's promoters, Ajanma Holdings Private Limited, is offering to sell 1.02 crore shares totalling Rs 438.91 crore in addition to a fresh issue of 0.93 crore shares aggregating to Rs 400.00 crores. The opening and closing dates of the Anchor Investor Bid/Offer Period are Wednesday, December 18, 2024.

The offer's price bracket is set at between Rs 410.00 and Rs 432.00 per equity share. At least 34 equity shares are available for bidding, and after that, bids can be placed in multiples of 34 equity shares. Retail investors must deposit a minimum of Rs 14,688 since the minimum lot size for an application is 34.

It is the company's intention to use the net proceeds to finance (i) further working capital needs, (ii) capital expenditures, and (iii) general corporate purposes. It is proposed that the company's equity shares be listed on the BSE and NSE. On Tuesday, December 24, 2024, the allocation of shares for the Transrail Lighting IPO is anticipated to be finalised. The proposed listing date for Transrail Lighting's initial public offering (IPO) is set for Friday, December 27, 2024, on the mainboard platforms.

The book-running lead managers of the Transrail Lighting IPO are Inga Ventures Pvt Ltd, Axis Capital Limited, Hdfc Bank Limited, and IDBI Capital Market Services Limited. The issue's registrar is Link Intime India Private Ltd.

The offer is being made through the book-building process, according to which qualified institutional buyers will receive no more than 50% of the net offer proportionately, non-institutional bidders will receive at least 15% of the net offer, and retail individual bidders will receive at least 35% of the net offer.

Its sales rose 29.3% to Rs 4,076.5 crore in FY24 from Rs 3,152.2 crore in FY23, and its net profit reached Rs 233.2 crore in FY24 from Rs 107.6 crore in FY23. Transrail Lighting recorded a net revenue of Rs 929.70 Cr and a net profit of Rs 51.74 Cr for the quarter that ended on June 30, 2024.

Investors are responding strongly in the grey market ahead of the launch of the Transrail Lighting IPO. According to investorgain.com, Transrail Lighting's IPO latest GMP was Rs 120, and it was last updated at 12:00 PM on December 17, 2024. The anticipated listing price for the Transrail Lighting IPO is Rs 552 (upper price band + current GMP), with the upper price band being Rs 432.00. Accordingly, based on the current GMP, Transrail Lighting is anticipated to be listed at a substantial premium of 27.78% over and above the issue price on the listing day.